Pharmacy board questions how to pay for new regulations

Nov. 15, 2012

Written by

The Tennessean

Now that the Tennessee Board of Pharmacy has created a task force to study possible new regulations for sterile compounding in the state, the question becomes how to pay for enforcement, board members said during their meeting Thursday morning.

Board members were reminded by their legal counsel that the civil fines assessed to pharmacists who break the rules are forwarded, by statute, to Tennessee’s general fund. Board staff did not immediately know how much revenue is generated by those fines.

During their regular discussion of the board’s finances, members wondered if those fines and their reserves could be used to help pay for expenses associated with whatever recommendations come from the newly created task force. The board has a reserve of $85,000 for the current fiscal year and $929,000 overall.

“We’re going to need resources from somewhere if we need additional manpower (as a result of new regulations),” board president Brenda Warren said.

The Board of Pharmacy isn’t the only agency which has revenue from civil penalties forwarded to the general fund. The same is true for other professional medical boards as well.

At its Monday meeting, the board voted to send out a survey to its 1,905 pharmacies to determine the scale and scope of compounding in the state. Board Executive Director Andrew Holt estimated the survey could cost between $1,400, if it is sent over regular mail, and $4,000 if it is sent by certified mail.

The pharmacy board has a budget of $1.7 million this year. Much of that revenue comes from bi-annual licensure fees paid by pharmacists and pharmacy technicians.

Other possible regulations could also require adding more more inspectors. Currently the board has five inspectors to cover 10,321 pharmacists working in 1,905 licensed pharmacies and 706 licensed wholesalers, manufacturers and distributors.